How much is a HP worth to you ?

[Anonymous]

In dollars, how much a HP is worth to you?

Currently I have car loan with 3% APR, I was thinking to refinance the loan and  drop it to 1.99 %. This would save 160 dollars the first year and 80 dollars next year, honestly I though the HP was not worth it since the net savings were not a loot. I would probably had done it if the savings amount were more like 500 a year.

Either for a CC or a loan what's your threshold? What's the minimum dollar amount  you are expecting to apply for a consumer loan.

[Anonymous]

bout tree fiddy

[myjourney]

Two different answers to your question:

A consumer or any other loan I'd value a HP at 1k or better for the first year alone plus whatever savings the 2nd  or more  years... so final range 1k-3.5k

CC valued no less than $500.00 first year via bonus plus perks of the card so final in the range of $600-$1000

Maybe more depending on the card 

Bonus answer mortgage 

HP= thousands per year 

[CH-7-Mission-Accomplished]

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@myjourney wrote:

Two different answers to your question:

A consumer or any other loan I'd value a HP at 1k or better for the first year alone plus whatever savings the 2nd  or more  years... so final range 1k-3.5k

CC valued no less than $500.00 first year via bonus plus perks of the card so final in the range of $600-$1000

Maybe more depending on the card 

Bonus answer mortgage 

HP= thousands per year 

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Are you saying you would not take one HP unless you could earn $600 to $1000 in bonuses, etc.?  Wow!

Isn't the point of having good credit to save you money?  If you can cut your interest rate on a loan, isn't cash worth more than not taking an HP?

[myjourney]

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@CH-7-Mission-Accomplished wrote:

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@myjourney wrote:

Two different answers to your question:

A consumer or any other loan I'd value a HP at 1k or better for the first year alone plus whatever savings the 2nd  or more  years... so final range 1k-3.5k

CC valued no less than $500.00 first year via bonus plus perks of the card so final in the range of $600-$1000

Maybe more depending on the card 

Bonus answer mortgage 

HP= thousands per year 

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Are you saying you would not take one HP unless you could earn $600 to $1000 in bonuses, etc.?  Wow!

Correct for CC's only tho

Isn't the point of having good credit to save you money?  It sure is but since I don't carry balances 0% cards have no use for me currently ...not to say in the future I wouldn't take advantage of one but for now...........

If you can cut your interest rate on a loan, isn't cash worth more than not taking an HP?

Not sure where I lost you but I covered that under consumer or any other type loan

Of course I would save with those but still I place a value of a thousand or more on the HP in savings be it Re-fi, auto, consumer, line of credit etc etc any type loan 

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Other wise is it really worth a HP to save $300 over 2 years and have that HP for 2 years?

No, for me others may feel different and I respect that 

[Revelate]

$0.  If it saves you money or makes you money, take it.

Unless I have something actually important coming up within a year (like a mortgage): then it's priceless.  Admittedly that'll change once I'm comfortably gold-plated.

[Thomas_Thumb]

Depends on circumstances. For me an HP for a CLI or a new card has no value. Neither would provide an added benefit. On the flip side, a couple HPs don't really have a significant impact on score. If you travel extensively and a card offers a lot of travel perks, I wouldn't worry about the HP.

If new credit is needed for an installment loan (car, Home equity, mortgage) then the associated HP(s) are a part of doing business. If you can save $500 with a refi, go for it. I'd personally stick with the existing car loan (or pay it off early - if possible) if total savings were much less than that.

[Anonymous]

I approached the question differently. If Experian (where I have the most HPs) contacted me and offered to remove my most recent HP for $500, would I do it? No.

For $100? No.  $50? No.  $20? No.  $5? Okay, for $5 I'll do it.

So that's my answer. A HP is worth $5 to me.

[takeshi74]

I don't really worry about it.  With my credit profile a single HP has little impact.  That said, I don't just go out and incur hard pulls willy nilly either.

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@Anonymous wrote:

Currently I have car loan with 3% APR, I was thinking to refinance the loan and  drop it to 1.99 %. This would save 160 dollars the first year and 80 dollars next year, honestly I though the HP was not worth it since the net savings were not a loot.

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Don't overlook the other factors as well.  You'll drop your AAoA with refinancing.  Length of Credit History is typically a bigger slice than New Credit

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

...though New Credit can seem to be a bigger constraint depending on one's specific credit profile.